SOURCE: Benton Resources Corp.

September 27, 2007 12:07 ET

Benton Resources Corp. Increases Bought Deal Private Placement

This News Release Is Intended for Distribution in Canada Only and Is Not Authorized for Distribution to United States Newswire Services or for Dissemination in the United States

THUNDER BAY, ON--(Marketwire - September 27, 2007) - Benton Resources Corp. (TSX-V: BTC) (the "Company") is pleased to announce that it has agreed with Westwind Partners Inc., as lead underwriter on behalf of a syndicate of underwriters (the "Underwriters"), to increase the size of its previously announced bought deal private placement (see Benton Resources Corp. news release dated September 26, 2007) from $10,001,000 to a total of $15,001,500, by increasing the size of the Underwriters' option from $2,006,000 to $5,000,500.

Under the increased financing, which is subject to regulatory approval, the Company will issue 6,400,000 Units and 1,380,000 Flow-Through Shares pursuant to the bought deal and the Underwriters will have the option to purchase an additional 3,200,000 Units and 690,000 Flow-Through Shares, on the same terms as previously announced. Each Flow-Through Share will be priced at $1.45 and each Unit will be priced at $1.25 and will consist of one common share and one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of Benton Resources Corp. at a price of C$1.60 for 18 months from the closing date.

Benton Resources Corp. plans to use the net proceeds from the sale of the Units for exploration and general corporate purposes. The proceeds from the sale of the Flow-Through Shares will be used for general exploration expenditures, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2007 taxation year.

The offering is scheduled to close on or about October 16, 2007 is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada, offshore including in the United Kingdom pursuant to applicable exemptions and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • For further information, contact:
    Stephen Stares
    3290 Willard Ave
    Thunder Bay, Ontario
    P7E 6J7
    Phone: (807) 475-7474
    Fax: (807) 475-7200